Interest free stablecoin protocol

[IMPACT]

We are creating a stablecoin protocol on the cardano blockchain which takes ADA as a collateral and lends AUSD stablecoin. The stablecoin is fully backed by over collateralized vaults of ADA which imparts value to it and arbitrage mechanisms ensure that the peg is always maintained.

Those vaults which fall below the liquidation ratio are liquidated through a stability pool. Stability pool is a pool of AUSD staked by normal users. At time of liquidation, the loan is paid using this pool and the liquidation penalty (10% currently ) gets distributed over to the contributors of the pool proportionally.

The proposed solution will facilitate minting of AUSD stablecoin as Cardano Native Asset using Cardano as collateral. Its design also brings down the liquidation ratio and liquidation penalty and provides opportunity to leverage ADA tokens without having to lose it.

You can check out our technical updates here : https://www.adadao.org/news-updates.html. We are partnered with some prominent KOLs who will help us reach the right target audience.

The most prominent thing we need is the support of the Cardano Community in completing our mission and fulfilling our vision. We are working day and night to fulfill our mission. As far as technical challenges are concerned, the plan of executing designs and putting them on code can be a little challenging but we have a top rated development team working with us so we can together eliminate this as well.

[FEASIBILITY]

We are working on our MVP which is a Beta version of the project. It will take a total of 19 weeks to complete and go live. We have created this document which describes the time required for each step : https://docs.google.com/spreadsheets/d/1fXZBQ6j8KR1yMrEgC1zeWpzJNI7NQCn9zOjshRG2l9o/edit#gid=0

MVP design and contract detailed analysis cost : 150k dollars

Implementation of the fully working stable-coin protocol with all the designs and logic combined will cost >1 million dollars.

Employee cost : 200k dollars

Security tests and audits : 100k dollars

Obaid Ul Ahad - CEO - Serial Entrepreneur. Founder of cardence.io . Ex Spinny, Ex Founder- Zafraa.

Murshid Alam : CTO - Ex TCS, Ex IBM , Blockchain developer

Irfan Khan : CMO - Marketing Head , Cardence

Ekterina B. - Developer - Haskell Developer, Metalamp

Olga K. : Developer - Cardano developer , Metalamp

Mr Rizwan Khan : Haskell Developer

Md Danish Alam : Community Manager

Brecht Malfait : Marketing Lead : Kryptonite

[AUDITABILITY]

We will provide regular technical updates on our website. We already had a few updates : https://www.adadao.org/news-updates.html.

We have the vision to be the pioneer in stablecoin protocol. Design and Implementation of stablecoin protocol fully operational on Cardano blockchain is the success criteria. We have the design ready and implementation is what is left to be executed.

We have not submitted any proposals in the past.